Digitalization of Micro Small and Medium Enterprises in the Age of COVID-19: Adopting the Use of Digital Platforms

Abstract

The spread of COVID-19 in Indonesia has pushed the government to impose a lockdown policy to contain the spread of the pandemic. The policy has a negative effect of decreasing aggregate demand thus affecting the income of MSMEs which is one of the important engines for the national economy. The research has the aim to analyze the level of the adoption of “UMKM Tirtajaya” as a strategy for the development of MSMEs by using the approach of The Unified Theory of Acceptance and Use of Technology (UTAUT). The respondents in this research are entrepreneurs from the city of Depok, West Java. The analysis of the answers in the research was completed by utilizing Structural Equation Modeling-Partial Least Square (SEM-PLS). The result shows that Performance Expectancy and Social Influence variables have a positive impact and do not have any significance towards the intention to use the digital
platform UMKM Tirtajaya. On the other hand, the Effort Expectancy variable shows a negative impact and is not significant towards the intention to use the digital platform UMKM Tirtajaya. Following that, the analysis of the variable of Facilitating Conditions on Behavioral Intention is found to have a significance on the aforementioned intention.